Monday, April 25, 2016

ERC mulls separate CSP guidelines for RE projects



by Myrna Velasco April 24, 2016

Separate guidelines on competitive selection process (CSP) for renewable energy (RE) projects are being thought out, primarily taking into account the uniqueness and peculiarities of some emerging technologies.
Energy Regulatory Commission (ERC) Chairman Jose Vicente B. Salazar has indicated this to media as he took note of the concerns raised by some industry players on the seeming inability of RE to compete with other technologies, primarily with coal on the price aspect.
In the proposed contracting round for RE, the ERC chief noted that they shall also weigh how RE investments can still be encouraged – essentially with the calls of some sectors for the country to finally veer away from the feed-in-tariff-laden project implementations.
“Should we encourage more REs or as a third world country, do we now need to ascertain the cost implications of these to our consumers,” he averred.
ERC Commissioner Josefina Patricia M. Asirit, for her part, gave an initial glimpse of what are the specific parameters they have been considering in the crafting of the CSP guidelines for RE ventures.
“We should be studying what’s the way forward for the installation targets – if it will be location specific or auctioned off per technology,” she noted.
In terms of location, Asirit emphasized that they are taking tough lessons from the Negros Occidental dilemma of transmission-constrained solar plants.
She noted that they will evaluate ‘transmission capacity limits’ when they start writing the CSP code for RE projects.
With the project completion race set off by the Department of Energy (DOE), solar developers just went ahead with their project developments without seriously ruminating on the line limitation that could shackle their capacity’s wheeling into the grid.
Worse, it is not only capacity curtailment that they could be suffering from – but they also have the public as ‘collateral damage’ to power system strain when their generation would suddenly go on-and-off – that in effect, such gridlock could trigger unwanted blackouts in the Visayas grid.
Concerned stakeholders are already realizing and acknowledging the fallacy and adverse implications of such outcome of the ‘solar race.’
Nevertheless, both the government policy-framers and the National Grid Corporation of the Philippines are still having their hands tied up on the solution realm because of the ‘grid’s resource lack’ on specific technology type that could sort out Negros’ need for frequency regulation capacity that could help arrest blackout conditions.

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